Ways Charitable Giving Enriches Your Life
In my role as a financial planner, I frequently assist clients in optimizing the effectiveness of their charitable contributions through the strategic implementation of tax-efficient giving strategies. By seamlessly integrating enduring philanthropic strategies into a comprehensive financial plan, you can position your assets to not only optimize tax deductions but also enhance the value for yourself, your heirs, and the charitable causes close to your heart.
Beyond the financial aspects, charitable giving is a great way to enrich your life beyond your pocketbook. In fact, there are several ways that charitable giving can foster a sense of purpose, connection, and satisfaction with your life. This article explores the ways which charitable giving can bring fulfillment and lasting rewards, supported by research on how giving increases happiness.
Giving Provides a Sense of Purpose
Maintaining a sense of purpose through your life is important for lifelong fulfillment and happiness. Purpose provides motivation to stay connected and engaged through your life. Additionally, having a purpose for your life has been linked to better health outcomes including longer life and lower stress. A bigger purpose makes the daily healthy habits like exercising, eating healthy, and keeping our minds sharp as these habits are now supporting your ability to fulfill that purpose rather than just because your doctor said you should do them.
Charitable giving has been linked to an enhanced sense of purpose and life satisfaction. A study published in the “Journal of Personality and Social Psychology” showed that individuals who spend money on others report higher levels of happiness than those who spend solely on themselves. This correlation between giving and increased life satisfaction highlights the role of philanthropy in nurturing a profound sense of purpose and fulfillment. 1
In a study of over 1,200 older people conducted with the Rush Memory and Aging Project, those with higher levels of purpose in life at the start of the study were more likely to be alive five years later than those with lower levels of purpose. 2
For an additional read on this subject, check out this article: Purpose: The Definition and Why It’s Good for You (everydayhealth.com)
Giving Increases Happiness
Giving increases your emotional well-being, life satisfaction, and positive emotions. In other words, you’re happier when you give.
Research published in the “Journal of Health Psychology” found that individuals who engage in regular acts of kindness, such as charitable giving, experience lower levels of stress and improved overall emotional health. 3
When you give, it is difficult to not have gratitude for the things you have and the money, possessions, or time you are giving away and grateful people are not miserable people. A study published in the “Journal of Happiness Studies” revealed that individuals who express gratitude through charitable acts experience increased levels of life satisfaction and positive emotions. Cultivating gratitude through giving fosters a more optimistic outlook and contributes to overall well-being. 4
Giving Creates Connections
Human connections are one of the most important aspects of being human. Yes – even for those highly introverted people out there myself included. While sometimes we idolize the “loner”, being a loner is in fact a terrible curse as social isolation increases the chances for depression, poor health, and reduces longevity. 5
Charitable giving, particularly when engaged directly, meaning you are involved and you’re not just giving through an organization, and giving locally, increases your connection with other people by giving you a way to develop friendships, mentors, mentorees, and role models. Even simply seeing the tangible impact your giving has on another human being creates a connection with them.
Giving Develops and Strengthens Communities
Charitable giving to local organizations also improves your own community that you live and work. When you interact with and give back to the community, everyone wins as the community itself will be healthier. When the community you live in is healthy and thriving, more opportunities within the community are created or brought in as people and businesses join in on the movement.
Research published in the “Journal of Economic Psychology” demonstrated that contributing to the well-being of others within a community positively influences our own well-being. As charitable acts strengthen social bonds and relationships, they create a positive feedback loop that enhances our overall happiness. 6
Giving Fosters Personal Growth
Continuing personal growth throughout life is essential for a fulfilling and enriched existence. It empowers individuals to adapt to new challenges, broaden their perspectives, and develop resilience in the face of change. Embracing lifelong learning and self-improvement cultivates a deeper understanding of oneself, enhances relationships, and nurtures a sense of purpose, contributing to a life characterized by constant evolution and meaningful experiences.
A study published in the journal “Psychological Science” found that even small acts of generosity lead to increased levels of oxytocin, promoting feelings of empathy and compassion. Empathy and compassion help in creating connections with others. 7
By giving to charities with your time, you can also be pushed out of your comfort zone to try new things and meet new people expanding your horizons and connections.
Finally, charitable giving can even make you better at handling your finances. A study published in the “Journal of Consumer Psychology” revealed that individuals who allocate money for charitable purposes tend to be more mindful of their spending habits and financial priorities. This heightened financial awareness contributes to a sense of control and contentment.8
Summary
Charitable giving is not solely an act of altruism; it is a multi-faceted journey that enriches our lives in profound ways. From deepening our understanding of humanity to fostering personal growth and leaving a lasting legacy, the rewards of giving extend far beyond the immediate act. Backed by scientific research on how giving increases happiness, embracing the transformative power of philanthropy leads us towards greater fulfillment, purpose, and a more meaningful connection to the world around us.
As a Christian financial advisor, these insights are not unfamiliar, as they reinforce the value of generosity we already know. Proverbs 22:9 says, “Blessed are those who are generous, because they feed the poor.” The Bible consistently encourages Christians to be generous in all areas of their life as an outpouring of the grace we experience through Jesus.
- Does Spending Money on Others Promote Happiness_acc24566-c7c9-4f03-b918-9d25628264c8.pdf (hbs.edu)
- Purpose in Life Is Associated With Mortality Among Community-Dwelling Older Persons - PMC (nih.gov)
- Poulin, M. J., Brown, S. L., Dillard, A. J., & Smith, D. M. (2013). Giving to others and the association between stress and mortality. American Journal of Public Health, 103(9), 1649-1655.
- Kyeong, Y. R., Youn, H. M., & Jang, H. J. (2018). Effects of Prosocial Spending on Life Satisfaction and Hedonic and Eudaimonic Well-being. Journal of Happiness Studies, 20(3), 861-877.
- Holt-Lunstad, J., Smith, T. B., Baker, M., Harris, T., & Stephenson, D. (2015). Loneliness and Social Isolation as Risk Factors for Mortality: A Meta-Analytic Review.
- Dunn, E. W., Aknin, L. B., & Norton, M. I. (2014). Prosocial spending and happiness: Using money to benefit others pays off. Current Directions in Psychological Science, 23(1), 41-47.
- Smeets et al. (2006). “Small Acts of Generosity and the Neuroscience of Gratitude”
- Kumar, A., & Griskevicius, V. (2014). Broadening the moral circle: Effects of environmentalism on moral judgment and economic decisions. Journal of Consumer Psychology, 24(3), 336-354.